There is a clear need for new generation capacity around the world to replace fossil fuels and to meet increased demand. Nuclear power generation currently provides about 11% of the world’s electricity from about 450 power reactors, in over 30 countries.
According to the OECD, power generation from nuclear will more than double by 2040.
Compared to other types of power generation, nuclear power stations are more complex during construction as well as moving into their operational phase.
This is due to risk allocation, quantifying the risks and available insurance capacity, dovetailing construction and operational insurances, as well as understating the nuclear insurance pools and commercial markets and how they interact with each other for these types of risks.
WHAT WE DO
Currently, most insurers in the international insurance market include a standard nuclear exclusion on “conventional” or non-nuclear related policies for what is considered to be the nuclear energy hazard.
This includes the toxic, explosive, radioactive or other hazardous properties of nuclear material originating from a nuclear site, and is primarily meant to exclude nuclear risks involving nuclear fuel and/or waste generated at nuclear generation facilities.
This exclusion does not include nuclear sources or other materials used in industrial, medical/pharmaceutical, agricultural or other conventional uses, but rather specifically applies to nuclear fuel, waste and enriched uranium.
These commercial risks outside nuclear facilities can normally be covered by policies in the conventional market, although there has been a recent trend where updated versions of nuclear exclusions eliminate coverage for all nuclear related risks – and this trend is growing.
With out detailed understanding of the nuclear insurance markets and the pressures faced by the nuclear industry, we have developed competitive innovative risk and insurance solutions.
Of particular relevance to the nuclear industry community is the fact that our team members have the following specialist skills:
- Practical knowledge and experience on the Paris and Vienna Conventions, the Price Anderson Act and the formation of nuclear pools. This knowledge has also been put in practice for the handling of nuclear property and liability claims
- A direct and close working relationship with nuclear risk insurers including Nuclear Risk Insurers Ltd (the British Nuclear Pool), Assuratome (French Nuclear Pool), American Nuclear Insurers (US Nuclear Pool) and EMANI/ELINI and NEIL/ONEIL (mutual nuclear insurers)
- Significant experience of placing major civil nuclear power generation programmes for clients
- Extensive understanding of contractual indemnity and insurance provisions for nuclear power generation programmes, negotiating with contractors and authorities on behalf of our clients
- Detailed understanding of and negotiation with original equipment manufacturers
- Negotiation and settlement of numerous large, complex power generation construction claims involving multiple classes of cover. We are the first and only team to settle a Paris convention nuclear liability claim
- Experience of training staff in the nuclear conventions and the insurance market for construction, operational and decommissioning contracts.
We have developed competitive innovative solutions for:
- Owner controlled construction insurance programmes for nuclear new build
- Contractors working on nuclear sites, both operational and construction
- Decommission of nuclear facilities
- Construction of uranium enrichment facilities
- Operational power stations
- Transportation of nuclear materials
Our clients also receive the benefit of broad, lender-compliant, policy wording which we regularly review and update to ensure that we continue to offer the broadest cover generally available in the market. The policy is designed to encompass all of the core insurance coverages associated with the project development and operational cycle.
In the unfortunate event of a loss, we have a specialist team of claims personnel who have deep experience in dealing with large and complex claims across every segment of the power generation industry.
We act proactively to manage the claims process and the other stakeholders involved such as lead underwriters, follow markets and loss adjusters.
The team has heavy involvement in the claims process whether this is regarding interim payments, the appointment of specialist experts or site visits.
Our claims team have strong relationships with the leading loss adjustors around the world and are able to recommend the best resources to ensure that our clients’ claims issues are managed by people that understand their business.